The Bajaj Auto scrip was the biggest loser among A-group stocks last week, down 25 per cent from Rs 544.95 to Rs 411.30 on account of a 34 per cent decline in its October sales. The stock has declined by 35 per cent from its recent high of Rs 633.75 on September 12.
Despite the festive season, the country’s leading two-wheeler maker saw its sales decreasing from 250,175 to 165,477 units in October. In the three-wheeler segment, sales declined by 6 per cent from 28,001 to 26,363 units. However, export sales increased by 35 per cent from 55,572 to 75,092 units during the month.
In the first seven months of the current financial year, two-wheelers sales of the company were almost flat, with a total of 12,92,550 vehicles sold between April and October.
Bajaj Auto’s second-quarter results were better than expected, with the company posting operating margins of 13.5 per cent. Volumes grew by 4.2 per cent.
The company also benefited from the lower excise duty, which was reduced from 16 per cent to 12 per cent in the Union Budget 2008-09, resulting in higher net realisation. As a result, net sales grew by 8 per cent, while operating margins expanded by 200 basis points to 13.5 per cent.
